Profit First can take your current business from zero to hero. I know a little corny, but you will see why this is true. Managing a business comes with loads of challenges but those same challenges are an opportunity for financial success. With the right strategies and systems in place, your business can experience increased cashflows and profits. Profit First is a strategy that has helped numerous businesses even my own. If your business is struggling financially or you are not confident about your numbers, you will want to keep reading.
What is Profit First?
The Profit First method is a hack that accountants use based on the Profit First book by Mike Michalowicz. This method combines human behavior with financial thinking. Most firms deduct expenses from revenue before taking profit (Revenue – Expenses = Profit). However, the Profit First method advises taking out profit first before expenses (Revenue – Profit = Expenses). Both formulas might seem alike on paper, but they are quite different, and the latter will create a huge impact on your business.
This strategy allows the business owner to build a habit that forces entrepreneurs to rethink money and spending. The ideology is that if you take out your profit first, everything else will adjust to suit your budget. Referring to Parkinson’s law that states ‘work expands to fill the time available to completion’, this means we are more likely to adjust expenses to the available money left after you take profit.
Why Your Business Needs a Profit First Professional to Help You with the following:
- Increase Your Profit
Now that you are aware of what Profit First is, finding a professional to help you strategically allocate revenue to profit, taxes, owner’s pay, and operating expenses is the next step to take. Yes, some people feel that it is as easy as calculating your percentages and transferring the money into your bank accounts. However, there are many other nuances to consider such as strategically analyzing and reducing expenses, revenue mapping, price changes as necessary, and so much more. The experience of a Certified First Professional like ERJ Services will help your business leap into six-figure profits over time. An expert with a working knowledge of the Profit First system of cash management will enable you to increase your profit drastically by implementing the associated principles.
- Smooth Business Operation
An expert with working knowledge of the Profit First System of cash management will support smooth business operations. When carefully planned and implemented, the Profit First methodology will allow the owners to enjoy their hard work as they are adequately paid and as they watch their bank account grow. Can you imagine the serenity this brings to your business? Working with a trusted Profit First professional gives you peace of mind because you are assured that your finances are in safe hands. Since these professionals are well trained before acquiring a Profit First badge, you are sure that your business is positioned to handle tax liabilities, cut unnecessary expenses, and to soar to the next level.
- Make Your Business Impactful
Sometimes, managing a business can create a gap where you fail to find the balance between being a business owner and living your life. You are so engrossed with work that you miss birthdays and engagement parties from close friends and relatives. This can tarnish your reputation and weaken the connection you have with your friends and family. You especially want to make sure that this is not the case with close friends and family. However, working with a Profit First Professional will help you plan to replace some of you time in the business and plan for the support staff you need to propel your business. This helps you keep booming relationships while also building a booming business.
In conclusion, the Profit First blueprint for the business is the right way to manage and control your business while being profitable. This method encourages resourcefulness and frugal spending among entrepreneurs. However, hiring a Certified Professional like ERJ Services partner with you from where you are financially to where you want to be. We want to help more entrepreneurs cross the 7-figure revenue line and building 6-figure profits. Remember that the road to financial freedom and legacy is one call away. Book a consultation with our expert now and be prepared for profits in abundance.